Event Activities
Before, During and After
In preparation for the event, we ask that you consider
some of the following ideas to ensure that your
students are ready to take full advantage of the brief
interaction they will experience with the executive.
Please know that these are only suggestions, and that
you as the educator may have some of your own
terrific ideas to use in preparation for this day.

DAY OF EVENT activities:

PRE-EVENT activities:

4. Provide name tents for each student so the
executive can address them by name during their
presentation.

1. Have the students do an Internet search by
company name to explore your guest speaker’s
company.
2. Conduct a Richmond Times Dispatch search for
recent articles about your guest’s company.
3. Provide the “How Ethical Am I?” (page 5)
questionnaire for your students to complete.
Discuss the results in an effort to get them
thinking about ethics before the visit.

1. Be sure that the students are prepared for the day’s
event.
2. Plan for a student to escort the executive to the
classroom at the designated time.
3. Create a welcome sign for the visiting executive.

5. Be prepared to introduce the executive to the class
or have a student give the introduction.
6. Actively participate in the discussion and help
your students appropriately engage the executive.
7. Thank the executive and extend an invitation for
him/her to return to the classroom for extended
discussions if you think it appropriate.

4. Discuss the definitions provided in the Related
Language (pg. 6) to familiarize your students with
some mainstream business terms that might be
used during the presentation.

8. JA staff may be present to photograph the
activities in your classroom. If not already on
file, please provide photo release forms for your
students.

5. Collect questions from the students that can be
randomly selected on the day of the visit during a
Q&A session with the executive.

POST EVENT activities:

6. Visit any of the websites provided on page 12.
7. If you have a media contact, please inform them
of this event. This is an excellent opportunity
to showcase your students interacting with the
business community.
8. Communicate with your school administration
that media may arrive at your school to cover the
event. (If anything is confirmed prior to the day,
JA will contact you.)
9. Encourage your students to ask appropriate
questions. Discourage personal questions
regarding salary, vehicles, and residence.

2

1. Send a thank-you to the executive. This could be
in the form of a group card or individual notes
from students.
2. Call Junior Achievement to share any unique
stories from your participation in the Empowered
through Ethics event.
3. Complete the educator evaluation; return to the
JA office.

Ethics Timeline
1960s to the 21st Century

Ethical Climate
Social unrest. Anti-war
sentiment. Employees have
1960s an adversarial relationship
with management. Values
shift away from loyalty to an
employer to loyalty to ideals.
Old values are cast aside.

The work ethic changes
Drug use escalates
Defense contractors and
other major industries
1970s riddled by scandal. The
economy suffers through
recession. Unemployment
escalates. There are
heightened environmental
concerns. The public
pushes to make businesses
accountable for ethical
shortcomings.

The social contract between
employers and employees
1980s is redefined. Defense
contractors are required to
conform to stringent rules.
Corporations downsize and
employeesâ&#x20AC;&#x2122; attitudes about
loyalty to the employer are
eroded. Health care ethics
emphasized.

Bribes and illegal
contracting practices

ERC develops the U.S. Code of Ethics for
Government Service (1980)

Influence peddling

ERC forms first business ethics office at
General Dynamics (1985)

Some firms choose to
cover rather than correct
dilemmas

Deceptive advertising

Compliance with laws high-lighted

Values movement begins to move ethics
from compliance orientation to being
â&#x20AC;&#x153;values centeredâ&#x20AC;?

Global expansion brings
new ethical challenges.
1990s There are major concerns
about child labor,
facilitation payments
(bribes), and environmental
issues. The emergence of
the Internet challenges
cultural borders. What
was forbidden becomes
common.

Formation of international ethics centers
to serve the needs of global businesses
OECD Convention on Bribery
(1997-2000)

NOTE: The ethical climate and response to ethical
dilemmas in the 1960s and 1970s blurs and loses some
distinction across the decade boundaries due to the
war in Vietnam, social upheaval, and resulting stress on
businesses.
ÂŠ Ethics Resource Center, 1747 Pennsylvania Ave, Suite
400, Washington, DC 20006

4

How Ethical Am I?
A Self-Assessment
The general stability of our society depends on the willingness
of individuals to act responsibly. Businesses need to be “good
citizens” because business leaders’ and managers’ decisions can
affect many lives.
Many everyday business events raise questions about what
is the ethical thing to do. To demonstrate this, complete
the following. Enter a 0 if you strongly disagree with the
statement, enter a 1 if you disagree, a 2 if you agree, and a 3 if
you strongly agree.
___1. I would not report it if I knew that a fellow employee
was leaving the job early each day. Employees should not
inform on their fellow workers.
___2. If employees I was supervising took off their helmets for
a while, I’d simply look the other way. There are times
managers need to ignore safety violations to get the job
done.
___3. If I was traveling on business and couldn’t remember
how much I’d spent on taxis or lunch, I’d simply estimate
the amount. It is not always possible to keep accurate
expense records.
___4. There are times an employee has to keep unpleasant
information from the boss. If I learned my co-workers
didn’t like her, I’d keep it to myself.
___5. We advertise that the hair tonic we sell prevents
baldness. My boss and I know it’s a lie. He argues, “If our
customers choose to believe it, that is their business.” I
just follow my boss’s orders.
___6. Sometimes you have to take care of personal business on
company time. My brother likes to send me e-mails at the
office, so I sometimes take a little time to write him back.
___7. I know that even the best salespeople can’t sell more
than 20 kits in one day. But if I say everybody has to
average 20 kits a day, they’ll work harder. If they don’t
meet the quota, I can always act nice and give them
another chance.
___8. Since management’s goals are carefully developed, I
should take whatever steps are necessary to achieve them.

___9. The customer said, “If you can make delivery by
Thursday, you’ve got a deal.” I knew we would ship on
Friday, but I said, “No problem” to make the sale.
___10. Long distance calls don’t cost the company nearly as
much as they cost me, so it’s O.K. for me to use the office
telephone.
___11. I would authorize payment in the form of gifts or
entertainment to customer representatives in order to win
a large contract, even if it is against company policy.
___12. Bending and occasionally breaking company rules and
procedures is expected in business. Our company has a
rule: Treat customers like you would your own family.
Well, sometimes it’s necessary to lie to your own family,
isn’t it?
___13. While it is important to check and report short
shipments to our suppliers, there is no need to tell them
about overshipments. The other day we received a bill for
two cases of spare parts. But the shipper goofed, because
we actually received four. I won’t say anything about it.
___14. My sister asked me to make 200 copies of a flier. I
said that I would. There is nothing wrong with using the
company copier for personal or community business.
___15. Taking home inexpensive items like pencils, paper
clips, and envelopes is one of the benefits of an office job.

YOUR ETHICS SCORE
0
1-5
6-10
11-15
16-25
26-35
36-44
45

A statue will be erected in your honor
You rank among the noblest
You have high ethical standards
You have above average ethical standards
You have average ethical standards
You might need training in ethics
You may find yourself in trouble with your boss
Keep it up and you’ll meet the warden

Related Language
Ethics Vocabulary
To think clearly about ethical issues and develop
practical approaches for dealing with ethical problems,
it is important to speak a common language, with the
vocabulary defined.

Ethics
Ethics refers to standards of conduct, standards that
indicate how one should behave based on moral
duties and virtues, which themselves are derived from
principles of right and wrong. As a practical matter,
ethics is about how we meet the challenge of doing the
right thing when that will cost more than we want to
pay.

Aspects of Ethics
There are two aspects to ethics: The first involves the
ability to discern right from wrong, good from evil,
and propriety from impropriety. The second involves
the commitment to do what is right, good and proper.
Ethics entails action; it is not just a topic to mull or
debate.

“Is” vs. “Ought” Ethics
Discussions about ethics and what is or isn’t ethical
often veer off into semantic debates about the nature
of ethics. Many will argue that ethics are “relative,”
“situational” or “personal.” Such positions usually reveal
a misunderstanding of ethics.
“Is,” or descriptive, ethics describes operational
standards of behavior — that is, how an individual
or group actually behaves, without reference to
what should be. “Is” ethics provides no basis for
distinguishing right from wrong. In that sense,
descriptive ethics is really not ethics at all, but more like
anthropology or social psychology.
“Ought” (or prescriptive or normative) ethics is
concerned with discernment of and commitment to
principles that establish “norms” of behavior applicable
to every person. Such ethics prescribe how people
should behave, prescribing standards for what “ought”
to be without reference to how things actually are.
6

The ideal behavior is based on specific values and
principles, which define what is right, good, and
proper. These principles will not always dictate a single
ethically acceptable course of action, of course. But the
prescriptive approach to ethics does provide a structure
for evaluating and resolving competing ethical claims.

Ethics, Morals and Mores
The terms “morals” and “mores” describe beliefs,
customs and traditions that are reflected in personal
convictions about right and wrong. In modern times,
morals tend to be associated with ever narrower and
more personal concept of values, especially concerning
matters of religion, sex, drinking, gambling, lifestyle and
so forth. Historically, however, “ethics” and “morality”
were essentially interchangeable terms.

Moral Duty
Moral duty refers to the obligation to act or refrain
from acting according to moral principles. Moral duties
establish the minimal standards of ethical conduct.
Thus, the failure to perform a moral duty properly
evokes the moral judgment that the conduct is wrong,
unethical or improper. There are both affirmative and
negative dimensions to moral duties. As a result, moral
duty obliges us to act in certain ways (e.g., honestly,
fairly and accountably), as well as to not act in other
ways (cruelly, disrespectfully, etc.).

Moral Virtue
Moral virtue goes beyond moral duty. It refers to moral
excellence, characteristics or conduct (say, generosity
or valor) worthy of praise or admiration because it
advances moral principle. Moral virtue is an ideal, not
ethically mandatory. Thus, we ought to be charitable,
temperate, humble and compassionate; however, it is
not unethical if we are not so long as we do not harm
others.

Values
Values are core beliefs or desires that guide or motivate
attitudes and actions. They also define the things we
value and prize the most, and, therefore, provide the

basis for ranking the things we want in a way that
elevates some values over others. Thus, our values
determine how we will behave in certain situations.

Values vs. Ethics
The terms “values” and “ethics” are not interchangeable.
Ethics is concerned with how a moral person should
behave, whereas values simply concern the various beliefs
and attitudes that determine how a person actually
behaves. Some values concern ethics when they pertain
to beliefs as to what is right and wrong, but most do
not.

Ethical Values
Ethical values directly relate to beliefs concerning what is
right and proper (as opposed to what is correct, effective
or desirable).

Unethical Values
Most of what we value is not concerned with our sense
of ethics and moral duty but rather with things we like,
desire or find personally important. Wealth, status,
happiness, fulfillment, pleasure, personal freedom, being
liked and being respected fall into this category. We call
them unethical values, for they are ethically neutral. The
pursuit of unethical objectives is normal and appropriate
so long as ethical values are not sacrificed in the process.

Conflicting Values
Our values often conflict. For example, the desire for
personal independence may run counter to our desire
for intimacy and relationships of interdependency.
Similarly, in particular situations, our commitment to be
honest and truthful may clash with the desire for wealth,
status, a job or even the desire to be kind to others.
When values conflict, choices must be made by ranking
our values. The values we consistently rank higher than
others are our core values, which define character and
personality.

Contradictory Values
Sometimes we hold values that are internally
inconsistent. For example, it is possible to believe

simultaneously that “honesty is the best policy” and yet
that one could be “honest to a fault.” Similarly, one
could accept the aphorism “a penny saved is a penny
earned” and find oneself occasionally acting on the
belief “you can’t take it with you” or “here today, gone
tomorrow.” Some accept the principle to “love thy
neighbor as thyself” and still believe that “in order to
make your way, you have to look out for Number One.”

Personal Moral Values
Most people have convictions about what is right and
wrong based on religious beliefs, cultural roots, family
background, personal experiences, laws, organizational
values, professional norms and political habits. These are
not the best values to make ethical decisions by — not
because they are unimportant, but because they are not
universal.
In contrast to consensual ethical principles —
trustworthiness, respect, responsibility, fairness, caring,
citizenship — personal and professional beliefs vary
substantially over time, among cultures and even among
members of the same society. Although it is proper for
individuals with strong personal and professional moral
convictions about right and wrong to treat these beliefs
with special reverence, they should be careful about
imposing these individual, non-consensus moral values
on others. This is an area where, as much as possible,
the universal ethical value of respect for others dictates
tolerance and respect for the dignity and autonomy of
each person and cautions against self-righteousness in
areas of legitimate controversy.

Personal Moral Value Systems
Each person has an “operational value system” which
reflects how one ranks competing values in deciding
how to act. A personal value system encompasses all
values — core beliefs and attitudes that guide and
motivate behavior — and, therefore, it includes personal
convictions about right and wrong, sometimes called
“personal moral values.” The fact that everyone has a
personal value system that includes opinions and beliefs
about what is right and wrong, however, does not mean
7

that ethics is purely a personal matter. Again, ethics — if
the term is to have any real meaning — refers to moral
norms, how persons should behave according to general
moral principles about what is good and right.

The False Notion of “Personal Ethics”
While every person inevitably must decide for himself
how to regard his moral obligations, to say that ethics
are “personal” misconstrues the nature of ethics.
It is likely that personal conscience will embrace a wider
range of values and beliefs than core, universal ethical
norms. When these “extra” values simply supplement
ethical norms with personal moral convictions that are
compatible with the dictates of normative ethics, there is
no conflict between universal ethics and personal ethics.
Unfortunately, some people are “moral imperialists”
who seek to impose their personal moral judgments on
others as if they were universal ethical norms. A bigger,
sometimes related problem is that some people adopt
personal codes of conduct that are inconsistent with
universal ethical norms. Clearly, not all choices and
value systems, however dearly held, are equally “ethical.”
If they were, we would have no way to distinguish
between the ethical levels of Hitler and Gandhi.
A person who believes that certain races are inferior
to others and therefore that it is “right’’ to oppress or
persecute those races has adopted a personal value
system that is inherently “unethical” according to the
universal and consensus values associated with normative
ethics. Similarly, an individual who has decided that
lying is proper if it is necessary to achieve an important
personal goal cannot assert personal ethics as a shield
against impropriety.
Simply put, all individuals are morally autonomous
beings with the power and right to choose their values,
but it does not follow that all choices and all value
systems have an equal claim to be called ethical. Actions
and beliefs inconsistent with the Six Pillars of Character
— trustworthiness, respect, responsibility, fairness,
caring and citizenship — are simply not ethical.
8

Imposing Value Judgment on Others
Prescriptive, or normative, ethics requires an objective
examination of personal values, exposing certain beliefs
(e.g., that one race is superior to another) as wrong
precisely because they conflict with core ethical values.
But while we must insist on honesty and integrity
over hypocrisy and corruption, we cannot also claim
that a particular religion, political philosophy or sexual
orientation is universally superior to another. Indeed,
allowing the widest possible latitude in matters of
personal choice and conscience is critical to upholding
the core ethical value of treating all with respect.

Values and Principles
When we speak of values we are referring to broad,
general beliefs or attitudes about something we prize
or desire. These beliefs, however, guide and motivate
ethical conduct only when they are translated into
principles. Ethical principles are the rules of conduct
that are derived from ethical values. For example,
“honesty” is a value that becomes operative in the form
of a series of principles, such as: tell the truth, don’t
deceive, be candid, don’t cheat. In this way, values give
rise to many principles in the form of specific “dos” and
“don’t.”

Corporate philanthropy
Corporate philanthropy as a company donation of a
portion of corporate earnings to charitable causes in the
community. Corporate philanthropy is a key component
of a corporation’s broader social responsibility, and
includes cash gifts, product donations, and employee
volunteerism.

OPERATING AN
ETHICAL COMPANY
Option Two – 45 minutes
This is an example of a lesson an executive may present.
Before going to class, create simple financial statements and bring 30 copies for use during this exercise.
Briefly discuss how a company’s stock price is set and
how the price of the stock goes up or down.
Tell students how money is gained or lost based on
comparing the current market value of the stock
against the purchase price of the stock.
Make sure students understand stock market value so
they understand the pressure a company feels from its
investors when the company’s stock price drops due
to poor performance or other market factors (i.e. bad
publicity.) Provide simple examples as necessary:

Objective
Help the students understand that ethics is doing what
is right – even if no one is watching, it costs more
money or it goes against the majority.

Election of Officers (10 minutes)
Talk about the governing structure of a public
company, and have the students identify the key
components: Board of Directors (BOD), Board
Chairman/CEO, and President. Help the students
understand that the BOD reports to shareholders.

Example: If 1,000 shares of Company A’s stock is
purchased at $10 per share ($10,000 transaction)
in January, and sold in November at $12 per share
(based on the market value in November), how much
money is made?
Elect BOD, Chairman of the Board, CEO and
President and COO. Give salaries and help students
understand the lifestyle associated with these positions.
If time allows, students may select hometown and
type of home, car(s), marital status, children, vacation
preferences etc.

Activity (15 minutes)
Establish the framework of a profitable global company
that produces gym shoes (or any easily distinguishable
material good.) Distribute and review financial
statements to ensure students understand they are in
a profitable business and have working knowledge of
revenue, cost of goods sold and profit.
Establish rewards (such as bonuses paid to company
officials) based on strong performance and internal

9

praise and recognition received from shareholders to
BOD to company officials. Also establish the company
as having a strong, positive image, which contributes
to the success of the brand.
Create a set of dilemmas (beneficial to discuss multiple
examples) that will be presented to either a company
official or the BOD, but not both. The object is to
create a scenario wherein a high-ranking official or the
BOD learns of information that can critically impact
and possibly cripple the business. However, there is
a moral dilemma to either divulge this information
and correct it, or cover it up so that the business is
protected.
Have the students draw their own conclusions about
the right thing to do in each of these situations. The
goal is for the students to have a deeper understanding
of why a company may find itself in a situation of
ethical choices.
Present the dilemma to the chosen official or BOD
and get the individual response. How does he/
she react? Discuss how this will impact him or
her personally (loss of bonus, salary, job, or even
incarceration.)
Continue presenting the dilemmas for the students to
discuss and analyze. If the class has a difficult time
in large group discussions, create smaller groups of 5
students and ask each group to report their decisions.

Dilemma: Hazardous Materials
It is discovered that a key, cost effective material used
to make the rubber sole of the gym shoes has been
determined to be highly toxic to humans and linked
to cancer. To acknowledge this would mean a lot of
negative publicity, not to mention having to revert to a
more expensive material that would substantially erode
profit margins.

Dilemma: Sweatshop Labor
It is discovered that one of the most productive
offshore factories that produces the shoes for the
company is using underage â&#x20AC;&#x153;sweatshopâ&#x20AC;? labor. To
acknowledge this would have legal ramifications for
company officers, create a lot of negative publicity, and
cost the company money redirecting labor to another

10

factory. Additionally, a reduction in production may
be experienced.

Dilemma: Accounting Error
It is discovered that several key operations have
overstated sales considerably over the past six quarters.
This information substantially impacts the annual
sales and earnings report of the last two fiscal cycles.
To acknowledge this dilemma may mean ceding
their number one sales position to the competition.
It may have a negative impact on the stock value
of the company and initiate an unwanted federal
investigation into accounting practices. Earnings
would have to be restated, stocks would plummet, and
it is very likely that thousands will be left unemployed
as a result of the restated cash position of the company.

Conclusion (5 minutes)
Many times it is one or just a few decision makers
who make a choice that impacts a whole company,
including thousands of families and consumers
attached to that company.
Ask the students to think about what it takes to make
the right decision. Sometimes the correct ethical
choice can have such a negative financial impact on
the business that it impacts employees, their families
and consumers harshly. Can an executive sometimes
make what appears to be an unethical choice to
protect his employees, their families, and perhaps
even the economy? Is it OK to do this? Again, the
goal is not to answer all of these questions, but to
leave the students with a deeper understanding of the
complexities of decision-making in large organizations.

Summary and Review (5 minutes)
Briefly review the new terms and concepts you
introduced.
Reinforce the fact that ethics is about how we meet the
challenge of doing what is right.
Remind students that ethics are derived from the
principles of what is right and wrong.

Additional JA Opportunities
JA High School Programs
Junior Achievement’s high school programs help students make informed, intelligent decisions about their future, and foster skills that will
be highly useful in the business world. These programs can be offered in a variety of sequences at grades 9 through 12 with the exception of
the Economics course, which is designed for grades 10 through 12. Local business consultants, trained by Junior Achievement, bring practical
business ideas and economic insights to the school classroom.
JA Company Program® – With the support and guidance of volunteer consultants from the local business community, the JA Company
Program provides basic economic education for high school students. By organizing and operating an actual business enterprise, students not only
learn how businesses function, they also learn about the structure of the U.S. free enterprise system and the benefits it provides. JA Company
Program helps young people appreciate and better understand the role of business in our society. Twelve required volunteer-led activities.
JA Be Entrepreneurial® – JA Be Entrepreneurial, a new high school program, focuses on challenging students, through interactive classroom
activities, to start their own entrepreneurial venture while still in high school. One of ten JA programs designed with the specific needs of upper
grade students in mind, JA Be Entrepreneurial provides useful, practical content to assist students to transition into becoming productive,
contributing members of society. Seven required, volunteer led activities.
JA Economics® – This program examines the fundamental concepts of macroeconomics, microeconomics, and international economics. Students
gain an appreciation of globalization and interdependence. Eight required volunteer-led activities.
JA Titan® – The year is 2030. The CEO of the future needs to get the Holo-Generator™ to market before the competition does. JA Titan is
more than just a game, it’s a JA experience. Coupled with the presence of a volunteer in the classroom, students apply their knowledge of business
as they compete online in the highly competitive industry of the fictional Holo-Generator™. While simulating “business quarters,” you’ll need to
enter decisions on price, production, marketing, capital investment, and R & D. The impact of your decisions will eventually lead to the success
or failure of your Holo-Generator™ company. Seven required, volunteer led activities.
JA Success Skills® – Building rapport. Influencing others. Fostering teamwork. These are critical interpersonal skills. Students undergo individual
interpersonal skill assessment and benchmarks are set. They then practice and develop these skills as JA classroom volunteers demonstrate their
relevance to school, to work, and to life. JA Success Skills focuses on developing interpersonal effectiveness. Through an assessment, the students
identify the strengths and unique potentials of their interpersonal skills. They examine how their interpersonal skills can be applied in the
workplace, and practice their skills in a variety of activities, including mock job interviews. They begin work on a skills portfolio that they can
carry with them into the workplace when seeking employment. Seven required, volunteer-led activities.
JA Exploring Economics® – JA Exploring Economics tackles a complex subject and makes it accessible and fun for high school students through
hands-on activities. JA Exploring Economics teaches concepts such as supply and demand and inflation, and teaches students about the effect
which governments and the individual have on the global economy and on the price of a loaf of bread. Seven required, volunteer-led activities.
JA Careers with a Purpose® – Through JA Careers with a Purpose, students learn to use ethical decision-making skills to make career and
life decisions. They discover that their career can have a noble purpose by reviewing their values and life maxims. This program includes seven
volunteer led program sessions and strongly encourages students to complete the skills, interests, and values career assessments available on ja.org.
The program also invites students to compete in the Laws of Life essay contest. Seven required, volunteer-led activities.
JA Personal Finance® – JA Personal Finance introduces students to the importance of making wise financial decisions. Students explore the role
that money plays in achieving personal goals throughout life. The program demonstrates the importance of planning, goal setting, and thoughtful
decision-making within the context of personal financial decisions. Junior Achievement gratefully acknowledges the National Endowment
for Financial Education and Jackson National Life for their dedication to the development and implementation of JA Personal Finance. Five
required, volunteer-led sessions.
JA Banks in Action® – JA Banks in Action is a volunteer-led program built around eight classroom sessions. During each session, students learn
the fundamentals of the banking industry and then have the opportunity to apply what they learn in a competitive environment using the JA
Banks in Action computer simulation. Through the simulation, students form banking teams and operate a bank over time by making several
decisions, each of which represents three months or a calendar quarter. Competing banks are doing the same thing and the banks start out on an
equal basis. The banking team that develops the best strategy and makes a greater profit than its competitors is the winner, earning the title “Bank
of Choice.” Eight required, volunteer-led activities.

11

Demonstrating Impact
The Need for JA
A 2008 survey conducted by the Jump$tart Coalition found
financial literacy to be on the decline among our nation’s
high school students. In 2008, high school seniors answered
correctly only 48.3 percent of the questions on the survey,
as compared to an average of 52.4 percent in 2006. At a
time when the economy is facing certain challenges, these
results highlight the critical importance of providing a solid
foundation of financial and economic education for our
students.
Male college graduates in 2002 earned 65% more than males
who had no education beyond a high school diploma; for
female college students it was 71% more.
Males and females who drop out of high school earn 23%
and 27% less respectively than male and female high school
graduates.
Of all U.S. workers 18 and older, 21 million (16%) are
actively disengaged at work, costing the economy $300
billion. Twenty-five percent of these just “show up to collect
a paycheck”.
The estimated U.S. national graduation rate is 71%. Of those,
only, 25% are considered to have excellent basic
skills.

12

The Proof JA is Working!
Of the students with fewer than three JA experiences, 50% felt
job security and permanence were very important; 100% of
those with more JA experiences agreed.
Among students who experience JA, 83% described themselves
as taking responsibility for their success compared to only 56%
of non-JA students.
While 69% of non-JA students were involved in postsecondary education, 77% of JA students in this study were
actively involved.
The majority of JA students, 79%, suggested that JA had
affected their attitudes toward continuing their education.
Students’ work attitudes were changed through JA with 74%
reporting that they had a more positive view of working after
JA.
The graduation rate for JA students with two JA experiences is
93%, and for those with more than three JA experiences, the
rate is 100%!

If you plan on using Option One for your classroom discussion, you will reference this handout.

A MAJORITY OF COMPANIES GIVE LESS IN 2009,
WHILE SOME COMPANIES GIVE SIGNIFICANTLY MORE
Each year, the Committee Encouraging Corporate Philanthropy reports on trends in corporate giving from the results of
its annual Corporate Giving Standard (CGS) Survey, an online measurement survey and benchmarking tool for corporate
giving professionals.1 The 2009 survey attracted more than 165 respondents reporting a combined total of $12.1 billion in
cash and product giving. While the robust online head-to-head benchmarking is reserved for participating member and
subscriber companies, CECP is very pleased to share this public analyis of the trends in corporate giving as a precursor to
the full Giving in Numbers report which will be available in summer 2010.
To accurately report on year-over-year trends, the following analysis is based on a matched-set of 95 companies that responded to the CGS survey
in 2006, 2007, 2008 and 2009. These matched-set companies account for over 80% of total giving in CECPâ&#x20AC;&#x2122;s survey and nearly half are
Fortune 100 companies. All figures are inflation-adjusted.
A First-Look at 2009 Findings
The tumultuous climate of 2009 needs no introduction. The stock market tumbled and rebounded, corporate profits
started to climb towards pre-downturn levels, and global unemployment rates rose. At the beginning of 2009, corporate
profits were not a foregone conclusion but by the end of the year, 54% of companies reported increased profit for the year.
Within this year of ups and downs, a number of seemingly contradictory findings emerge. The majority of companies
gave less, and aggregate total giving increased. Non-cash contributions flucutated widely, while corporate and foundation
cash contributions reached their lowest point in four years. While the pairing of some of these findings may seem unusual,
the full story of corporate giving in 2009 is brought to life with company-level insights into giving changes.
Majority of Companies Give Less, as Some Companies Give a Lot More
At the individual company level, 60% of companies within a matched-set gave
less in 2009, with the majority of these companies decreasing giving by 10% or
40%
Increase
54%
more. This finding reverses the patterns seen in 2007 and 2008 where the
58%
Giving
Increase
Increase
majority of companies increased giving.
Giving
Giving

42%
Decrease
Giving

46%
Decrease
Giving

From 2006
to 2007

From 2007
to 2008

60%
Decrease
Giving

From 2008
to 2009

Company-wide spending constraints instituted on account of the economic
pressures were cited frequently as a reason for decreased giving. Some
companies referenced declines in foundation endowments and in some cases,
reduced transfers of funds from the corporation to the foundation. Additional
reasons for decreased giving included: the conclusion of multi-year grants;
unrepeated donations of land or product; fewer international disasters requiring
response; and declining participation in matching gift programs due to staff
reductions.

While a majority of companies reduced their giving, 40% of companies increased their corporate contributions in 2009.
Some of these increases were attributed to additional funding provided for programs serving basic health and community
needs; other rises were supported by increased employee participation in matching gift programs, along with heightened
caps for matched contributions. In fact, dramatic giving increases by a handful of companies caused aggregate total giving
to rise in 2009. This shift was driven by increased non-cash contributions from pharmaceutical companies, along with
1

For more information on the Corporate Giving Standard (CGS) system or for details on how your company can become involved with this
exciting measurement initiative, please contact Alison Rose at arose@corporatephilanthropy.org. The Committee will post its annual public
data analysis report, Giving in Numbers, 2010 Edition, for free download in summer 2010 at www.CorporatePhilanthropy.org, but in the
meantime, the 2009 Edition is also available online.

13

expanded giving budgets resulting from corporate mergers and acquisitions. Nearly 70% of the mergers and
acquisitions reported within the matched-set occurred in the Financial and Health Care industries.
Non-Cash Giving Fluctuates as Cash Contributions Decline
Within the four year period, non-cash donations emerge as the most volatile giving type in comparison with corporate and
foundation cash giving. Reasons for variation in non-cash giving include: product donated one year and not the next;
disaster relief supplies given in times of need; and pro bono service projects that depend on project availability and
staffing. As such, non-cash donations can change substantially from year to year, depending on these circumstances. As
an example of the magnitude of these shifts, from 2008 to 2009, half of the year-over-year changes in non-cash
contributions fell outside of a range of -36% to +27%.
While non-cash donations fluctuated, cash contributions declined. Almost two-thirds of companies reduced their
foundation cash and corporate cash contributions. Aggregate cash giving continued to fall from its high in 2007 of $4.12
billion to a current level of $3.80 billion. Companies appeared to siphon cash donations to programs serving basic needs,
namely Health & Social Services and Community & Economic Development programs, and reduced cash contributions
elsewhere.
A Majority of Companies Give Less and Aggregate Total Giving Rises
Aggregates and medians are two common ways to look at changes in giving: an aggregate reflects the total giving in a
particular year, and a median is an indication of the typical companyâ&#x20AC;&#x2122;s contributions. Within this four-year set, aggregate
giving rose 7% above 2008 levels, and median total giving receded to its lowest point. These results highlight the
differences and limitations in these calculations; aggregate values are quite susceptible to changes at the extremes, while
medians are dependent on the sorted order of a set. However, as shown in the aforementioned investigation into the
company-level changes, a simple trend emerges: more companies gave less and a handful of companies gave a lot more.
Aggregate Total Giving

The Forecast for 2010
Looking ahead, 20% of respondents were unable to predict 2010 giving levels, but 35% anticipated increases over 2009
levels, and 36% believed giving would remain flat.2 The predictions of increased giving were not limited to one industry in
particular.
2

14

In 2009, 130 companies responded to the survey question on giving projections for 2010.

RESOURCES
Junior Achievement of Central Virginia
(www.jatoday.org)
Through the help of a dedicated volunteer network,
Junior Achievement educates and inspires young
people to succeed in the global economy. Based on
the pillars of work readiness, entrepreneurship, and
financial literacy, JA reaches more than 22,000 local
students annually. Several national studies confirm that
Junior Achievement programs equip youth with the
knowledge, skills, and attitudes necessary to successfully
participate in a global economy. Visit www.jatoday.
org for additional ethics resources including the 2007
Deloitte/Junior Achievement national poll results and a
classroom handout on the Six Pillars of Character.
JA Student Center (studentcenter.ja.org)
JA Student Center is an online tool geared to help
students become workforce ready. Students can search
for colleges, seek out financial aid, gain knowledge on
how to handle their money, explore careers they are
interested in, get tips on how to start a business, learn
more about the importance of ethics, and much more.
Better Business Bureau
(www.bbb.org nationwide or
local BBB www.richmond.bbb.org)
The Better Business Bureau is a private non-profit
organization that promotes and fosters ethical business
practices. The BBB system has proven that the majority
of marketplace problems can be solved fairly through
the use of voluntary self-regulation and consumer
education. A network of local Better Business Bureaus
serves all major population centers in North America
offering service to their customers: the consuming
public and business community.
Centre for Applied Ethics
(www.ethics.ubc.ca)
The Centre was formally created in 1993 by the
University of British Columbia’s Board of Governors as
an independent unit in the Faculty of Graduate Studies.
It is primarily an interdisciplinary research centre which
studies a diverse range of topics, including health care
practices, business and professional procedures, new
information technologies and environmental issues.

Character Counts
(www.charactercounts.org)
The purpose of the CHARACTER COUNTS! Coalition
is to fortify the lives of America’s young people with
ethical values called the “Six Pillars of Character.”
These values, which transcend divisions of race, creed,
politics, gender and wealth, are: trustworthiness, respect,
responsibility, fairness, caring and citizenship.
Character Education Partnership (CEP)
(www.character.org)
The CEP is a nonpartisan coalition of organizations
and individuals dedicated to developing moral character
and civic virtue in our nation’s youth as one means of
creating a more compassionate and responsible society.

The Chronicle of Philanthropy
(http://philanthropy.com/)
The Chronicle of Philanthropy is the No. 1 news
source, in print and online, for nonprofit leaders,
fund raisers, grant makers, and other people involved in the philanthropic enterprise. For more
than 20 years, The Chronicle has been connecting
the nonprofit world with news, jobs, and ideas. The
Chronicle provides news and information for executives of tax-exempt organizations in health, education, religion, the arts, social services, and other
fields, as well as fund raisers, professional employees
of foundations, institutional investors, corporate
grant makers, and charity donors. Along with news,
it offers such service features as lists of grants, fundraising ideas and techniques, statistics, reports on
tax and court rulings, summaries of books, and a
calendar of events.
Committee Encouraging Corporate
Philanthropy

(http://www.corporatephilanthropy.org/)

The Committee Encouraging Corporate Philanthropy
is the only international forum of business CEOs and
chairpersons focused exclusively on corporate philanthropy. CECP’s mission is to lead the business community in raising the level and quality of corporate
philanthropy. We offer our members essential resources,

15

including a proprietary online benchmarking tool, networking programs, research, and opportunities for bestpractice sharing. CECP believes that discipline applies
to philanthropy, like any other business function. When
companies demonstrate programmatic effectiveness, fiscal accountability, and good stewardship in their philanthropic programs, society and business both stand to
benefit greatly. Through innovative programs like those
aimed at eradicating disease or raising childhood literacy
rates, companies can also improve employee retention
and heighten brand recognition.
Educators for Social Responsibility
(www.esrnational.org)
ESR fosters ethical, emotional, and social developments
through its support of schools, families, and children.
It is recognized for its role in social and emotional
learning, character education, conflict resolution,
violence prevention, and intergroup relations. ESR
offers comprehensive programs, resources, and training
for adults who teach children at every developmental
levelâ&#x20AC;&#x201C; preschool through high school.
Ethics Resource Center
(www.ethics.org)
The Ethics Resource Center (ERC) is a nonprofit,
nonpartisan educational organization whose vision is
an ethical world. The mission of the Ethics Resource
Center is to be a leader and a catalyst in fostering ethical
practices in individuals and institutions.

16

International Society of Business, Economics,
and Ethics (ISBEE)
(www.isbee.org)
The International Society of Business, Economics, and
Ethics (ISBEE) is a world-wide professional association
that focuses on the study of business, economics, and
ethics.
Josephson Institute of Ethics
(www.josephsoninstitute.org)

The Joseph & Edna Josephson Institute of Ethics is a publicbenefit, nonpartisan, nonprofit membership organization
founded by Michael Josephson in honor of his parents to
improve the ethical quality of society by advocating principled
reasoning and ethical decision making.

Society for Business Ethics
(www.societyforbusinessethics.org)

The Society for Business Ethics (SBE) is an international
organization of scholars engaged in the academic study of
business ethics and others with interest in the field.

Mission

To inspire and prepare young people to
succeed in a global economy.

Purpose

To be recognized by businesses, educators and policy makers around the
world as the premier organization for inspiring and preparing young people to become
successful, contributing members of the global society, and for uniting people of all
nations around the common goals of creating jobs, building stable economies, and
providing higher standards of living.